If I leave should I simply roll to IRA? There is no extra kicker on it if they force me out?
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Roll it over and invest index funds. Both Schwab and Fidelity (where you already have an account, thanks to AT&T) have excellent tools for ferreting out the best performers.
If you want to invest like Warren Buffet, look at IVV (basic S&P index large cap fund) that has outperformed most of the specialized specific market funds (tech, health care, etc.) or the equal-weight funds ( these spread investments down the index to pick up smaller cap companies ). In some prior years, it was the other way around. But all of these broad index funds will outperform the annuity or cash in an up market.
Look at short or mid term treasury funds to get around 1-3% return with minimal risk of share value (these are still funds, but values have not moved by more than 5% even during corrections and crashes. Beats CDs and savings and 0.01% broker money funds. SPTS is one example.
If you're not comfortable doing the research, seek out a fee-only financial advisor.
Roll it over!
Easy answer on this question: take the lump. You can easily make 6%+ with preferred stock, income CEFs and still keep you principal and equal or exceed the annuity.
I was surplused in Mar 2019.
I ran the numbers and had my father also run the numbers (numbers guy).
He confirmed that leaving it with AT&T would get me less than 2.5% a year. He said that I should roll the pension into my 401K and then I control where/how it is invested. Also he said that it is very unusual for a person to not average over 2.5% in a 401K. I took my 270K and did what he suggested. Last year my 401K got 25% which was not uncommon for many people.
I would not trust att with your pension. pensions are insured by the government but you will get less if they have to bail out att pension. and the rate this company is going it would not surprise if randy and stankey try get creative with the pension and screw it up somehow.
Take it to the track and blow it on a 3 year old thoroughbred. Why do listen to broke fools anyway?
Take that money and buy Facebook and Google. You'll be rich.
If you have the option for cash balance, rolling to an IRA is advisable.
You should run the numbers on it with their scenarios to see if you take a lump sum at age 65. You might want to leave it and take it at 65. It is a cash value pension so it is the same as an IRA but there is no Required minimum distributions. ATT cannot take any money. It is already in there and there is no risk of loss if you leave it. If you tak it out an put it in the market you could lose a lot or gain a lot. But you could end up poor taking too much risk. This is a big deal since Social Security is on the cutting table for Republicans because all the good one are rich, and if you ain’t rich you ain’t a good Republicans and will be framed a taker and be very poor. Your choice- all or nothing could give you nothing.
Yes! Roll it over and invest it in a tech fund!